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The video tutorial explains how to hide placeholder text in content control form fields when creating forms. The placeholder text appears in light gray to prompt users, but it can be concealed. The presenter demonstrates this by using a form with plain text form fields. To hide the placeholder text, the user should enter design mode, highlight the text including the period, right-click, and select the font option. In the font box, under font effects, there is an option to hide the text. The video encourages viewers to check out the playlist for more information on creating fillable forms.